Emkay Global Financial has issued a buy rating on Shriram Pistons and Rings with a target price of ₹4650 in its research report dated March 01, 2026. According to the brokerage report, the recommendation is based on the company's strong growth prospects and strategic positioning in the automotive ancillary sector.
The management has reiterated confidence in sustaining industry-beating growth of 8-10% outperformance versus the underlying auto industry. As reported by Emkay Global, Shriram Pistons and Rings aims for continued scale-up in legacy business through significant opportunities aided by its diversified portfolio across powertrains and higher focus on emerging ICE technology. The company is also targeting market-share gains from current 50% on limited capacity additions by peers.
The brokerage highlights rapid scale-up and margin expansion across acquired entities including EV components, precision plastic injection molding, interiors, and lighting businesses. According to Emkay Global's analysis, these businesses generate healthy cashflows and are self-sustaining, with the company seeing share gains in existing and new clients through superior yet competitively priced technology-enabled offerings.
Emkay Global projects 26%/22%/20% FY26-28E revenue/EBITDA/EPS growth with >20% return ratios. The brokerage maintains its buy rating and ₹4650 target price at 25x Dec-27E PER, favoring the company in auto ancillaries on its dominance in core segments and transition into a multi-product player via diversification into non-ICE segments.
